XRP has fallen to just above the $1 mark, reaching its weakest trading level of 2026.
While the sharp decline has fueled bearish sentiment across the market, blockchain data suggests a different story may be unfolding beneath the surface.
Several onchain indicators point to continued accumulation by investors, declining exchange balances and increasing institutional interest, signaling that many market participants are positioning for a potential recovery rather than preparing to sell.
Exchange Wallets Continue to Lose XRP Holdings
One of the strongest bullish signals comes from the steady reduction of XRP held on major cryptocurrency exchanges.
According to CryptoQuant analyst Amr Taha, Binance has experienced the largest decline, with approximately 100 million XRP leaving the platform over the past month.
The exchange’s reserve dropped from around 2.78 billion XRP in mid-May to roughly 2.68 billion by June 25, marking its lowest balance since March.
Other trading platforms have followed a similar pattern. Upbit recorded a modest decrease in reserves, while Bybit experienced the steepest percentage decline among the exchanges monitored.
Withdrawals Now Outpace Deposits on Binance
Investor behavior on Binance has also shifted noticeably in recent weeks.
Since June 17, XRP withdrawals have consistently exceeded deposits every day, creating the longest withdrawal-dominated streak seen in roughly a year.
Data shows withdrawals accounted for nearly 54% of XRP transactions at one point, while deposits fell to their weakest level since 2024.
Although the figures measure transaction counts rather than token volume, analysts say the trend suggests more users are transferring XRP into private wallets instead of moving assets onto exchanges for potential selling.
Whale Investors Continue to Accumulate
Large XRP holders have also remained active buyers throughout the recent market weakness.
CryptoQuant data indicates that whale wallet flows have stayed in positive territory during the current quarter, averaging more than five million XRP in daily net accumulation over a 90-day period.
Rather than distributing their holdings during the price decline, major investors appear to be steadily adding to their positions, reinforcing the view that long-term confidence remains intact.
Institutional Money Keeps Flowing Into XRP
Demand from institutional investors has added another layer of support for the digital asset.
Spot XRP exchange-traded funds attracted an additional $2 million in net inflows on June 24, bringing June’s total to approximately $31 million.
Since April, cumulative ETF inflows have climbed to around $243 million, highlighting continued interest from professional investors despite the token’s price weakness.
The sustained inflows suggest that institutions remain willing to build exposure to XRP even as retail sentiment remains cautious.
Technical Picture Still Points Lower
Despite encouraging onchain activity, XRP’s chart continues to reflect a bearish trend.
The cryptocurrency briefly touched $1.01, its lowest level of the year, leaving it close to falling below the psychologically important $1 threshold for the first time since late 2024. Overall, XRP has declined roughly 43% since the beginning of the year.
Analysts note that if selling pressure continues, the next significant demand area could emerge between $1 and $0.63. This range represents an unfilled price gap left behind during XRP’s rapid rally in late 2024 and may attract fresh buying interest.
Long-Term Bulls Remain Optimistic
Not everyone believes the recent weakness signals a prolonged downturn.
Black Swan Capitalist founder Versan Aljarrah argues that XRP has spent several years forming a broad accumulation pattern characterized by gradually rising lows on both weekly and monthly charts.
According to his analysis, lengthy consolidation phases often precede major price breakouts.
Based on that outlook, Aljarrah continues to project a long-term price target of $10, representing a potential gain of roughly 900% from current trading levels.
Market Watches for Signs of a Turning Point
For now, XRP remains caught between bearish price action and increasingly positive blockchain fundamentals.
Whether shrinking exchange balances, steady whale accumulation and continued ETF inflows are enough to reverse the downtrend remains uncertain.
However, many analysts believe these indicators could lay the groundwork for a stronger recovery if broader market conditions begin to improve.
